After a protracted period of consolidation following the global financial
crisis, the economy is growing, bolstered by large investment projects. Banking-sector
conditions are improving, with credit to the private sector growing, following years of
deleveraging. The large cost of constructing the first phase of a highway (one quarter of
annual GDP), however, is pushing government debt to high levels. The authorities took
significant steps to bolster fiscal sustainability with the 2017 budget and are currently
implementing a well-specified fiscal adjustment strategy in line with staff advice.
Outlook